More bad news for Barack Obama’s Affordable Care Act (ACA).
A new report revealed that more than $1 billion in Obamacare subsidy overages are unrecoverable by the IRS.
It is yet another brick being pulled out from the foundation of Obama’s presidential legacy.
How We Got Here
When the ACA was enacted in 2010, it included large subsidies to help people afford their insurance plans.
Subsidies were granted based on a subscriber’s estimated annual income.
If someone made more money than they had estimated from getting a raise or changing jobs and reached the subsidy cap, they would actually owe the government money back.
The government, however, has not been able to recover a significant portion.
According to a Treasury Department report, nearly $4 billion in subsidy overages were paid out through tax credits — and about $1 billion is deemed unrecoverable by the IRS, because of the way the law was written.
The recovery law is weak because at the time, legislators didn’t want to scare away potential subscribers with the threat of a large tax bill should their incomes change unexpectedly.
Don’t Expect Changes
While there was once hope that the flawed Obamacare legislation would be replaced with a better solution, that may have all changed with the Democrats taking charge of the House.
Democrats have vowed to defend the ACA at all costs now that they have the House.
Republicans, however, believe the people of this county were sold a bill of false goods.
Obamacare was supposed to be simple and help all Americans get affordable insurance.
What they actually gave us was an extremely complicated and poorly thought-out piece of legislation that has more loopholes in it than a slice of Swiss cheese.
Furthermore, while it has benefited certain Americans, those in the middle have been significantly penalized.
Many are often forced to take insurance at higher premiums than before that offer less coverage as well as higher deductibles. And the rates keep rising.
The only hope we have right now is that the decision by a federal judge, who deemed the individual mandate as unconstitutional, is upheld in appeals.
If that happens, even though Democrats control Congress, they will have no choice but to revisit the legislation to make some rather dramatic changes to it.